Freddie Mac 2015 Annual Report Download - page 420

Compensation Terms - Michael Hutchins - June 24, 2013
Page 3 of 4
This contribution, which is in addition to the matching contribution, is determined using a
defined formula and is subject to a three-year vesting schedule.
• Supplemental Executive Retirement Plan (SERP) - The SERP is an unfunded nonqualified
plan for officers intended to make up for employer-provided contributions under the
Thrift/401(k) Savings Plan that are capped due to Internal Revenue Code limitations.
Under separate cover, we are sending details of our employee benefit plans. As a new
employee, you may select the benefit plans that best meet your needs by logging on to
Fidelity’s NetBenefits website at http://netbenefits.fidelity.com. Shortly after your start date, you
will receive an email from the Freddie Mac Benefits Center instructing you to log on to
NetBenefits to make your elections.
Note that you will not receive any information at your home address. Your enrollment window is
open for 30 days following your hire date. During orientation, our benefit plans and information
about enrollment will be explained in greater detail. Please visit our new employee website,
http://www.freddiemac.com/careers/newemployee/, for information about working at Freddie
Mac.
III. Restrictive Covenant and Confidentiality Agreement
The terms of your compensation provided in this letter are also contingent upon your agreement
to be bound by the terms of the enclosed Restrictive Covenant and Confidentiality Agreement.
IV. FHFA’s Review and Approval Authority
The terms and conditions of your compensation have been reviewed and approved by FHFA in
consultation with Treasury, as required under the terms of the company’s Preferred Stock
Agreement. Notwithstanding such approval and any provision of this letter, you acknowledge
and understand that any compensation paid or to be paid during or after your employment
remains subject to any withholding, escrow or prohibition consistent with FHFA’s authority
pursuant to the Federal Home Loan Corporation Act, as amended, or the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992, as amended.
V. Reservations of Rights:
This letter is not intended, nor shall it be interpreted, to constitute a contract of employment for a
specified duration. Your employment is at-will and both you and Freddie Mac retain the
discretion to terminate the employment relationship at any time for any lawful reason with or
without notice.
This offer of employment is contingent upon Freddie Mac’s satisfaction in its sole discretion with
your references and the results of your background checks and drug test.